Amazon and Mastercard-backed ToneTag has launched the latest mode of making payments, which enables “pay by car,” The service can be availed by linking the Unified Payments Interface (UPI) with the car’s infotainment system. This allows car owners to digitally pay for things like fuel without using their smartphones.
ToneTag demonstrated the new technology in partnership with MG Hector and Bharat Petroleum.
How does the payment work?
Once a car reaches a fuel station, the fuel dispenser number appears on the car’s infotainment system, and the soundbox announces the customer’s arrival to the fuel station staff.
Subsequently, after refuelling, the customer enters the amount announced via the soundbox and this results in a contactless transaction. ToneTag has said that the new technology can be used for other services, such as recharging the car’s Fastag, with the balance being displayed on the car’s infotainment screen.
Previously, ToneTag had successfully developed an offline voice-based payment system through any phone under RBI’s sandbox. The challenge was to enable digital payments for people who don’t use smartphones or are yet to learn to use apps.
What is the RBI sandbox?
In India, Financial regulators such as the Reserve Bank of India (RBI), Securities and Exchange Board of India (Sebi), Insurance Regulatory and Development Authority (IRDA) and the International Financial Services Centres Authority run their own sandboxes.
The RBI sandbox scheme was first introduced in 2019 and is based on thematic cohorts. The first four cohorts were on retail payments, cross-border payments, MSME lending, and prevention of financial fraud, respectively.
At the Global Fintech Fest, ToneTag also unveiled conversational payments on UPI in partnership with the National Payments Corporation of India (NPCI), enabling bill payments over a phone conversation.
What is ToneTag?
The company’s website says it is the world’s largest audio-based solutions provider. The company offers both software and hardware to enable various services. The company was founded by Kumar Abhishek and Vivek K Singh in 2013.